When carrying out a car ownership transfer in Palma de Mallorca, it’s essential to make sure the vehicle is free of any encumbrances, embargoes, or outstanding fines. Otherwise, legal complications, administrative blocks, or unexpected financial issues may arise for the buyer. At our gestoría in Palma de Mallorca, we explain everything you need to know before completing the vehicle transfer in Palma de Mallorca.

1. Vehicles with charges or embargoes

It is technically possible to carry out a vehicle transfer with an active embargo, but it is not recommended. The charge remains associated with the car, and the new owner automatically assumes responsibility for that debt.

Main risks:

• The embargo will continue to appear in official records.
• The buyer may not be able to sell or finance the vehicle normally.
• The car could be seized or even auctioned if the debt is not cleared.

Additionally, if the vehicle has a retention of title (e.g. pending financing), it cannot be transferred until that charge is officially cancelled and recorded in the Movable Property Registry.

🔎 The seller is legally obliged to inform the buyer of any existing charges. This information is public and can be easily verified through an official DGT report.

2. Vehicles with outstanding fines

The handling of fines depends on their severity:

• Minor fines: These do not block the transfer. The debt remains linked to the previous owner.
• Serious or repeated fines: If there are four or more serious or very serious unpaid fines, the DGT will block the transfer procedure. This measure is regulated by the Spanish Traffic Law.

Risks for the buyer:

• The vehicle may be embargoed due to these debts.
• The new owner could face legal problems if the situation is not properly documented.
• Conflicts may arise with authorities or insurance companies.

3. Recommendations before transferring ownership

At our gestoría in Palma de Mallorca, we always recommend following these steps before completing any car transfer in Palma de Mallorca:

✅ Request a DGT vehicle report

This is the quickest and most reliable way to check if the car has any embargoes, title reservations, or unpaid fines.

✅ Cancel all debts and charges before the name change

In some cases, it is mandatory; in others, highly advisable. If not resolved, the buyer must accept the risk in writing in the purchase contract.

✅ Get informed and act transparently

Legal responsibility can fall on both parties if the vehicle’s legal status is not properly documented.

Conclusion

Completing a vehicle transfer in Palma de Mallorca without first checking the legal status of the car can lead to serious problems. Whether due to embargoes, title reservations, or serious fines, the consequences could fall on the new owner.

At our gestoría in Palma de Mallorca, we take care of reviewing, informing, and processing the entire procedure safely, so that the transfer is carried out without risk or complications.

Want to carry out a car ownership transfer in Mallorca? We offer free advice and handle all the paperwork for you.